Mutual Fund Stocks: In Friday’s trading session, a tremendous rise is being seen in the shares of mutual fund companies listed in the stock market. Shares of HDFC MMC (HDFC Asset Management), UTI Asset Management and Nippon Life Asset Management and Aditya Birla Sun Life AMC are trading with huge gains. In the board meeting of the stock market regulator SEBI, the decision to be taken regarding the fee structure of mutual funds was postponed, due to which the stocks of asset management companies have seen a rise.
The biggest gain in today’s trade is being seen in Nippon Life Asset Management, whose stock is trading at Rs 297 with a gain of 15 per cent. The stock of HDFC MMC is trading at Rs 2282 with a gain of 11.41 per cent or Rs 234. UTI Asset Management’s share is trading at Rs 780 with a gain of 7.50 per cent and Aditya Birla Sun Life AMC is trading at Rs 393 with a gain of 6.44 per cent.
In fact, it was believed that the regulator SEBI (Securities and Exchange Board of India) would approve major changes in the fee structure charged from investors of mutual funds in its board meeting. Also, strict code of conduct rules can be implemented for asset managers of mutual funds. SEBI has already recommended a major change in the annual charges i.e. Total Expense Ratio (TER) charged by mutual funds from unit holders. This change can reduce the cost of investing in mutual funds.
Although mutual fund companies were already opposing SEBI’s suggestion. Now that the SEBI board has not taken any decision on this, the shares of all asset management companies are running high.
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